The Bitcoin currency was developed just a few years ago as a private initiative. It is now known that it is not regulated by any central monetary authority in the world like the other currencies do. Instead, it has its own regulatory mechanism that involves peer-to-peer network of its users’ computers.
For the Bitcoin currency, the Bitcoin is the basic unit and is subdivided into satoshis which are in turn equivalent to one hundred millionth of a bitcoin.
Bitcoins and satoshis can be transferred from one internet user to the next supposing he or she is buying a certain good or service at no extra charges. This has enabled companies from across the globe make global transfers without having to continuously worry about exchange rates and bank transaction charges.
To be able to use Bitcoin, you are required to have a safe which is essentially a piece of software where you can store, send and receive Bitcoins. There are three types of Bitcoin safes, and they include software safes, mobile safes, and web safes.
Software safes are set up on your computer to provide you with complete control over your Bitcoin safe. As for mobile Bitcoin safes, they are usually installed on your smartphone or tablet and make it possible for you to use Bitcoin for daily transactions in shops and supermarkets by scanning a quick response (QR) code. Finally, the web Bitcoin Safes are found on the internet and can store these Bitcoins in the cloud.
It is nowadays very easy to pay for goods and services using Bitcoins, and you just have to input the recipient’s address on your computer or smartphone, the amount and then press send. As for smartphones, you can scan the QR code so as to obtain the recipient’s address.
Guarding Your Bitcoin Safes
A Bitcoin safe resembles a bank’s safe that is full of cash. To decrease the probability of loss, you need to keep only tiny quantities of Bitcoins on your pc or smartphone and keep the bulk of your own Bitcoins in a safer environment, such as an offline safe. Provided your wallet was encrypted, then an offline back-up will permit you to recover your safe, should you misplace your smartphone or PC.
The essence of encrypting your Bitcoin safe using a password is to prevent people without it from accessing the safe. The password you use must be one that you will not forget because recovering it once you lose it is very difficult.
Ensure you also have physical backups of your Bitcoin transactions and passwords to ensure that your funds are safe and secure.
Because Bitcoin runs on software you download to your computer (PC or laptop) or smartphone, you have to update this software frequently so as to keep your Bitcoin transactions and safes secure.